Advantages of outsourcing in Revenue Management

Many enterprises within the industry have been doing it for a long time, even newspapers are not afraid of it any more: They outsource specified tasks into the hands of external service providers.

Published: 19 Aug 2008

Many enterprises within the industry have been doing it for a long time, even newspapers are not afraid of it any more: They outsource specified tasks into the hands of external service providers.

Outsourcing in the hotel industry at the moment limits itself to e.g. stewarding or housekeeping areas. In the strategic adjustments of the hotels it still happens very seldom, to put the trust into the experts from outside. This can bring numerous advantages to the hotel.

Bringing an external revenue manager should be considered as a chance, a fresh look at the steady structures of the hotel. RM means collecting figures, data and facts as well as the analysis of the information, so it is an extremely creative occupation. Everyone interprets the data differently and comes to different conclusions. Therefore, the influence from the outside is important: a revenue manager, who does not come directly from the hotel, thinks also in other directions and has an objective look at the situation.

And, bringing an external revenue manager helps to save time. A new setting lasts normally from three to four months. Within this time, however, valuable know-how gets lost. At the same time the growth and competition ability are endangered. A revenue manager from outside can use this time more effectively. It is an ideal time to watch the actual situation of the hotel and if necessary bring new impulses to rise the sales.

There are still hotels that think they can do without revenue management. Outsourcing can help also these enterprises. There are external service providers who take their time to provide the most suitable product. This way the long-standing routine gets broken and new ways can be indicated. At the same time, this form of outsourcing causes the reduction of the personnel expenditure.

Hoteliers sometimes expect a ready draft from the hired revenue manager. There is no perfect revenue management that can be implemented in each and every hotel. Every enterprise and every market works differently and they differ from one another. Therefore, an intensive and detailed analysis of the market is always required and based on such an analysis an individual strategy can be established. This cannot be done overnight but thanks to the expert from the outside, the hotelier can always see the advantages such as: cost effectiveness, quick reaction to changes, clearly defined contact person, more productivity and a valuable know-how.

(Contributed by Christine Sauer, Revway)

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